Melrow Inc. ,a U.S.firm,suffers heavy losses and lays off many of its employees.As a measure to reduce its manufacturing costs,it shifts its production units to another country where inexpensive labor is available.In this scenario,Melrow Inc.is engaged in _____.
A)licensing
B)outsourcing
C)franchising
D)inshoring

Question

​Melrow Inc. ,a U.S.firm,suffers heavy losses and lays off many of its employees.As a measure to reduce its manufacturing costs,it shifts its production units to another country where inexpensive labor is available.In this scenario,Melrow Inc.is engaged in _____.
A)licensing
B)​outsourcing
C)​franchising
D)inshoring

Quizplus · Accepted Answer

Melrow Inc. is shifting its production units to another country to reduce its costs, which is known as outsourcing. Licensing involves allowing another company to use its intellectual property, franchising involves allowing another company to use its business model and branding, and inshoring involves bringing production back to the company's home country.

​Melrow Inc

Melrow Inc